Iraq to deny license to U.S. Blackwater guards

By Peter Graff

BAGHDAD (Reuters) - Iraq will deny a licence to Blackwater Worldwide, the private security firm accused of killing Iraqi civilians while protecting U.S. diplomats, U.S. and Iraqi officials said on Thursday.

"The operating permission for the firm Blackwater will not be renewed. Its chance is zero," said Alaa al-Taie, head of the press department at Iraq's Interior Ministry.

"It is not acceptable to Iraqis and there are legal points against it, like killing Iraqis with their weapons."

Blackwater employs hundreds of heavily armed guards with a fleet of armoured vehicles and helicopters to protect U.S. diplomats in Iraq under a State Department contract. It boasts that no American has been killed while under its protection.

Iraqi officials have expressed anger with the firm since a September 2007 shooting in which Blackwater guards opened fire in traffic, killing at least 14 unarmed Iraqi civilians.

One Blackwater guard has pleaded guilty in U.S. court to voluntary manslaughter and attempt to commit manslaughter over that incident. Five others are awaiting trial next year on manslaughter charges. The firm denies wrongdoing.

A U.S. embassy official confirmed that the embassy had been informed that the licence would not be renewed, and said it was working on finding a new arrangement to cover its security.

"We don't have specifics about dates. We are working with the government of Iraq and our contractors to address the implications of this decision," the official said.